2021 economic outlook remains positive despite COVID-19 resurgence

Despite the complexity of the fourth COVID-19 wave, Vietnam’s GDP growth is forecast to exceed 6.5 percent this year on the back of surging industrial production and global economic recovery, according to Assoc. Prof. and PhD Dinh Trong Thinh, a senior economist from the Academy of Finance.
2021 economic outlook remains positive despite COVID-19 resurgence ảnh 1Illustrative photo. (Source: VNA)
Hanoi (VNA) – Despite the complexity of thefourth COVID-19 wave, Vietnam’s GDP growth is forecast to exceed 6.5 percentthis year on the back of surging industrial production and global economicrecovery, according to Assoc. Prof. and PhD Dinh Trong Thinh, a senioreconomist from the Academy of Finance.

Given the economy is growing well in the first half of2021, it is likely to expand over 7 percent in the remaining months, settingthe scene for the country to achieve an overall GDP growth of at least 6.5percent this year, Thinh told the Lao Dong (Labour) newspaper.

The coronavirus is gradually brought under control, he said,plus domestic production has been experiencing positive growth, withmanufacturing and processing picking up at a current rate of 10 percent. Thesector may rise by 17 – 18 percent during the final months of 2021, he added.

Data shows that industrial production index in the firstfive months of the year advanced 9.9 percent year-on-year, with manufacturingand processing up 12.6 percent. Total retail sales of goods and services hiked7.6 percent year-on-year.

Thinh went on to say that the US, Chinese and EUeconomies are bouncing back, and increases in global credit demand will providea good opportunity for Vietnam’s exports. The US’s economic growth remainspositive at present and Vietnam’s shipments to the US is growing strong, headded.

A recent report by RongViet Securities Corporation (VDSC)forecast that the country’s GDP will grow by 7.2 percent in the second quarterof 2021 and 6.5 percent for the year as a whole.

Asian Development Bank (ADB) Country Director for VietnamAndrew Jeffries said Vietnam is capable of achieving the twin goals of curbingthe pandemic and sustaining economic growth this year. The country’s success incontaining the virus has strengthened foreign investors’ confidence in itseconomy, he added.

It is important for Vietnam to boost growth and easy waysfor small- and medium-sized enterprises (SMEs) to grow at the same time,thereby creating a solid foundation for a future private sector-led economy,Jeffries remarked.

According to the latest economic outlook report fromOxford Economics (OE), commissioned by the Institute of Chartered Accountantsin England and Wales (ICAEW), despite the recent resurgence in COVID-19,Vietnam’s growth outlook remains optimistic and the economy is expected toreturn to pre-pandemic levels by the second half of 2021.

The country’s GDP is forecast to grow at 7.6 percent in2021, among the highest rates in the region, the report said, noting that Vietnamwas one of the few economies in the world to grow in 2020 due to its success incontaining the pandemic.

“This early success enabled the economy to benefit fromthe surge in global trade activity and enjoy strong foreign direct investmentflows that boosted export-oriented and manufacturing industries,” according tothe report.

It said together with Singapore, Vietnam is expected tocontinue leading the region in recovery. “Despite a resurgence of COVID-19cases in Vietnam, which has affected its manufacturing sector and exportindustries, its economy is predicted to rebound swiftly once restrictions arelifted,” the report read.

Economist Thinh emphasized that the most important thingat present is that Vietnam must give priority to giving COVID-19 vaccine toworkers and preventing the virus from spreading inside companies and industrialparks.

Accelerating COVID-19 vaccine inoculation and keeping thecoronavirus at bay remain key factors to sustain growth because with theCOVID-19 resurging, declining incomes and economic conditions will havelong-term impact on consumers’ spending behaviour and lifestyle, he said./.
VNA

See more

Pharmaceutical production at a company in Vietnam. (Photo: VNA)

Vietnam’s pharma sector heats up with major M&A deals

PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.

Ngoc Linh ginseng is found within a narrow ecological zone around the peak of Ngoc Linh Mountain. (Photo: VNA)

Quang Nam positioned as medicinal plant hub

The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.

The official logo of resort airline Sun PhuQuoc Airways (Photo: Sun Group)

Official logo of resort airline Sun PhuQuoc Airways announced

Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.

High-end apartment projects in Gamuda Gardens Urban Area in Hanoi are developed by Malaysian real estate group Gamuda Land. (Photo: VNA)

OECD Economic Surveys: Vietnam 2025 report released

The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.

Prime Minister Pham Minh Chinh (R) welcomes Antoine Colin, HP Senior Vice President for Global Supply Chain Digital Transformation & Resilience (Photo: VNA)

HP looks to scale up production capacity in Vietnam

Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.

Vietnamese lychees make sweet impression on UK consumers (Photo: VNA)

Vietnamese lychees win over UK consumers

The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.

VinFast manufacturing facility in Haiphong city (Photo: Vingroup)

Vingroup among top 40 largest enterprises in Southeast Asia

This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.